Analyst suggests Nifty strategy; bets on Axis Bank, Bajaj Auto, L&T Fin

Ajit Mishra of Religare Broking recommends Nifty strategy and three stocks to buy; check details here

Nifty50 share price

Markets edged higher for the third consecutive session amid volatility and ended with modest gains. After opening near flat, the Nifty drifted lower initially and then moved in a range for most of the session. However, noticeable traction in select heavyweight stocks during the final hours helped the index close near the day’s high at 25,819.30. Sectoral performance was largely in line with the benchmark, with metals, FMCG, and banking emerging as the top gainers, while IT slipped after the recent rebound. Broader indices, including midcaps and smallcaps, saw selective participation and gained about 0.5 per cent each.

 

Sentiment remained measured due to weak global technology cues and broader risk-off behavior in overseas markets, while expectations around macro data and corporate earnings continued to influence positioning. In the absence of fresh domestic triggers, trading activity stayed selective and stock-specific throughout the session.

 

Market participants are attempting to regain control, but indications still favour an extended consolidation phase. The 26,000 level remains a key hurdle for the Nifty, while the 25,400–25,600 zone is likely to offer support on any dip. In this environment, a stock-specific approach is advisable, with focus on sectors and themes showing consistent trends, along with disciplined position sizing given the possibility of renewed volatility.  ALSO READ | Stocks to buy today: Analyst suggests Prime Focus, GMDC and one other stock

Stocks to buy: Recommended by Ajit Mishra, Religare Broking

Axis Bank Limited | LTP: ₹1,377| Recommendation: Buy | Target: ₹1,475| Stop-loss: ₹1,325

Axis Bank continues to display a structurally strong bullish trend, marked by a consistent pattern of higher highs and higher lows. The stock is trading comfortably above its key moving averages, with improving volumes confirming sustained buying interest. 

 

On the higher timeframe, price action remains within an upward-sloping channel, indicating that any corrective dips are likely to attract demand. Selective long positions may be considered in the near term.

Bajaj Auto Limited | LTP: ₹9,980| Recommendation: Buy | Target: ₹10,700| Stop-loss: ₹9,600

Amid continued strength in the auto sector, Bajaj Auto is witnessing renewed buying interest. The stock has been trending gradually higher and is forming a base-on-base structure following a breakout from a reversal pattern. 

 

On the weekly timeframe, it has generated a fresh buying pivot with a breakout from a tight consolidation range while sustaining above its key moving averages. The overall chart structure indicates steady accumulation and supports a constructive near-term upside. Traders may consider accumulating within the specified range.

L&T Finance Limited | LTP: ₹300.25| Recommendation: Buy | Target: ₹323| Stop-loss: ₹288

L&T Finance shows a structurally bullish setup, with the price closing above its short- and medium-term moving averages, reflecting positive trend alignment and underlying strength. The recent consolidation appears constructive, suggesting supply absorption rather than distribution. 

 

A pattern of higher lows indicates consistent buying interest on declines, supported by stable volume behavior. Selective long positions can be considered in the near term, subject to broader market conditions.

 

(Disclaimer: This article is by Ajit Mishra, SVP – research, Religare Broking. Views expressed are his own.)